New research has indicated that the UK’s renewable energy industry is becoming less attractive to investors.
According to EY’s latest Renewable Energy Country Attractiveness Index (RECAI), the UK has slipped back to sixth place behind the US, China, Germany, Japan and Canada.
The RECAI shows that the UK has fallen back by a place for the second consecutive quarter, which EY suggested is because of conflicting signals over the future of the sector. With a general election set to be held in the UK in under a year, it is not clear what commitments to the industry will be made by the country’s government beyond May 2015.
Ben Warren, EY’s environmental finance leader, cited the recent carbon tax freeze, as well as an energy market competition probe and a proposal to scrap onshore wind subsidies post 2015 from the Conservatives as weighing heavily on confidence within the renewable energy industry.
The current Conservative-Liberal Democrat coalition has launched schemes such as its flagship Green Deal policy in a bid to increase energy efficiency, but this has widely been judged to be a flop due to a small amount of take-up and interest from the public.